Trump touts ‘done’ US-China deal on rare earths, Chinese students

WASHINGTON: US President Donald Trump touted ties with China as “excellent” on Wednesday, saying the superpowers reached a deal, including on rare earths, after two days of talks aimed at preserving a truce in their damaging trade war.

Trump said on his Truth Social platform that China would supply rare earth minerals and magnets – vital elements for US industries – while Washington would allow Chinese students to remain in American universities.

Read more: Rare earths: China’s trump card in trade war with US

His post came after top United States and Chinese negotiators announced a “framework” agreement late Tuesday following two days of marathon talks in London.

“Our deal with China is done,” Trump wrote, adding that the agreement was still “subject to final approval with President Xi (Jinping) and me.”

“President XI and I are going to work closely together to open up China to American Trade,” he said in a second post.

Major US indexes edged higher in early trading.

‘RIGHT TRACK’

After negotiations spanning more than 20 hours, US Commerce Secretary Howard Lutnick said Wednesday that the talks were “totally on the right track.”

“They are going to approve all applications for magnets from United States companies right away,” he told CNBC, on what should happen after Trump and Xi give the green light to the deal.

Read more: China ready to ease rare earth exports to EU

He added that Washington would lift its measures once China acts, and that US tariff levels on China would not change from here.

Treasury Secretary Scott Bessent told lawmakers separately that it was possible to rebalance economic relations with China if Beijing proved a “reliable partner in trade negotiations.”

“If China will course-correct by upholding its end of the initial trade agreement we outlined in Geneva, and I believe after our talks in London they will, then the rebalancing of the world’s two largest economies is possible,” Bessent told the House Ways and Means Committee.

The two sides agreed to reduce their tit-for-tat, triple-digit tariffs during talks in Geneva last month, but cracks appeared in the detente after Trump accused China of violating the deal.

Washington was concerned at slower supplies of rare earths after Beijing in early April began requiring domestic exporters to apply for a license — widely seen as a response to US tariffs.

‘CANDID’ TALKS

Rare earths are used in everything from electric vehicles to hard drives, wind turbines and missiles.

On Truth Social, Trump said China will supply “full magnets, and any necessary rare earths” up front.

Washington has also raised Beijing’s ire by vowing to revoke the visas of Chinese students, a major source of revenue for US universities.

On Wednesday, Trump said: “We will provide to China what was agreed to, including Chinese students using our colleges and universities.”

The US president also said that the United States applies 55 per cent tariffs on Chinese goods – a combination of his 30 per cent additional levies this year and the rough average of pre-existing duties, a White House official said.

He said Beijing charges 10 per cent duties on US goods.

The rates are the same as those that were previously agreed in the truce, which temporarily brought US tariffs down from 145 per cent and those imposed by China from 125 per cent.

In a Chinese state media readout of the talks released Wednesday, Vice Premier He Lifeng, who headed Beijing’s team in London, stressed the need for the two sides to strengthen cooperation in future dialogue.

“As a next step, the two sides should… continuously enhance consensus, reduce misunderstandings and strengthen cooperation,” He said, according to state broadcaster CCTV.

Speaking to reporters in London, China International Trade Representative Li Chenggang earlier said: “Our communication has been very professional, rational, in-depth and candid.”